An advantage of licensing to a company is that it can enter into a foreign market at a little risk, while the licensee gains production expertise or a well-known product without having to start from scratch.
Licensing of the international business transactions gives the licensee certain type of rights and resources to manufacture or market a particular product in a particular country, generally called the host country.
Licensing also represents a business arrangement in which one company is given permission by another company or individual to manufacture its product by giving a specific fee.
This arrangement includes allowing the licensee to use the patents, trademarks, copyrights, designs, and other intellectual property rights of the licensor.
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